Kelly Services Inc

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KELYA : NASDAQ : Services
$20.82 | %
Today's Range: 20.51 - 20.92
Avg. Daily Volume: 133,500
07/22/16 - 4:00 PM ET

Financial Analysis


KELLY SERVICES INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. KELLY SERVICES INC has average liquidity. Currently, the Quick Ratio is 1.45 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 9.58% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)1349.11320.6
EBITDA ($mil)20.317.6
EBIT ($mil)14.712.1
Net Income ($mil)11.23.7


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)46.449.4
Total Assets ($mil)1978.41866.3
Total Debt ($mil)39.380.6
Equity ($mil)910.8831.1


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin17.6617.1
EBITDA Margin1.51.33
Operating Margin1.090.92
Sales Turnover2.82.98
Return on Assets3.091.33
Return on Equity6.732.99
Debt Q1 FY16 Q1 FY15
Current Ratio1.511.52
Debt/Capital0.040.09
Interest Expense0.90.9
Interest Coverage16.3313.44


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)38.037.7
Div / share0.050.05
EPS0.290.1
Book value / share23.9722.05
Institutional Own % n/a n/a
Avg Daily Volume135006.0140953.0

Valuation


BUY. KELLY SERVICES INC's P/E ratio indicates a significant discount compared to an average of 44.35 for the Professional Services industry and a significant discount compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 0.87 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 6.18. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, KELLY SERVICES INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KELYA 13.18 Peers 44.35   KELYA 13.14 Peers 23.52

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

KELYA is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

KELYA is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KELYA 11.90 Peers 21.00   KELYA 0.92 Peers 2.87

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

KELYA is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

KELYA trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KELYA 0.87 Peers 6.18   KELYA 146.87 Peers 17.64

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

KELYA is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

KELYA is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KELYA 0.14 Peers 3.53   KELYA -0.11 Peers 13.27

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

KELYA is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

KELYA significantly trails its peers on the basis of sales growth

 

 

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